Edris
Futures market sentiment analysis: Consolidation or bullish pullback in the short-term?
✔️ Bitcoin’s price action has been mostly determined by the Perpetual Futures market over the last 18 months. One of the key indicators to evaluate the Futures market sentiment is the Taker Buy Sell ratio which in short, indicates whether the bulls or the bears are more aggressive and in control. ✔️ As demonstrated on the chart, values below 1 indicate more selling pressure and would likely coincide with bearish price action. Conversely, values above one tend to lead to bullish price action. ✔️ Currently, it is evident that this metric has broken above 1 and the price seems to be consolidating and potentially, start a bullish trend in the short-term. However, note that it could just be a consolidation or a bullish pullback before another continuation lower. So, many other factors should be considered closely in the coming weeks in order to determine if a bullish reversal or another bull trap could be expected.